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In June and July he protected almost 900,000 shares by entering into options agreements that assured he would get at least $43 a share but could get more if the share price held up.
When its shares soared, the company did so almost effortlessly by selling put options–agreements to buy Dell shares at a fixed price in the future-and buying calls that locked in its price for the shares.
Not to mention, once the founder and advisor have nominally agreed to a relationship, law firms enter the mix and seed the new advisor with a mountain of paperwork — legal agreements, options agreements — documents stuffed with legalese and binding statements.
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But Mr. Cheney has not disclosed the full options agreement.
Options agreement.
Under their option agreements, they receive a price equal to 15 times the preceding year's after-tax earnings.
Mr. Lee, who has worked about 15 years in Silicon Valley, complained that he was never told that the Skype terms were different and that he didn't notice the language in his option agreements that spelled this out.
Hundreds of pages of documents — contracts, film option agreements, memorandums, old scripts, yellowing correspondence with agents and producers, some dating back to the 1970s — line the closet shelves of her Manhattan apartment.
Generally, stock-option agreements are honored without question.
In the time remaining in the day, there is a need to prepare drafts and final versions of a variety of documents and agreements including technology disclosures, researcher agreements, option agreements, licenses, royalty agreements, assignments, nondisclosure agreements, etc.
This point is particularly relevant when it comes to a new form of cheating: repricing of options (where executives are offered relief from bombed-out share prices through new option agreements granted at a lower price).
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com